Up until the year 2021, many researchers in the fintech sector believe that the fintech apps environment was in its infancy.
Soon after that, it was more of a watershed moment that oversaw a growth spurt in the form of various popular fintech products, fintech applications, and vice versa. Before that, the fintech apps eco-system was seen as a speck that was speculated to last no longer than a financial bubble itself.
Moving on, neo banks emerged, the digital currency went through its ebbs and troughs, and we are currently looking at approx. $130 billion revenue strapped to last year’s fintech applications.
That’s an impressive number, and the good news is that it’s continuing to grow at a steady pace.
So, here’s a million-dollar question: as an app developer, or a business owner, is it feasible to delve into fintech products development?
Of course, it is.
The fintech apps sector is expected to increase at an annual 12 percent rate. By the end of the year 2024, fintech applications sector is expected to rake in around €188 billion.
The same speculation goes for blockchain application and neo-banking applications and associated features where contactless payment is integrated into almost every industry vertical.
This post highlights some of the introductory aspects of how to develop fintech apps, fintech products, and vice versa. We think some form of elementary knowledge sharing is called for – i.e., if you are looking to get started in this field as a developer or a business owner.
Let’s get started.
What Are Fintech Applications and The Criticalities They Address To?
Fintech, short for financial technology, refers to the use of cutting-edge technology to create innovative financial products and services.
Fintech apps are mobile applications that leverage technology to offer various financial solutions to individuals and businesses.
These apps have gained significant popularity in recent years due to their convenience, efficiency, and accessibility, and they address critical challenges in the financial industry.
One critical challenge that fintech applications address is financial inclusion.
Traditional financial services, such as banking and investing, have historically been inaccessible to certain segments of the population, such as low-income individuals, immigrants, and those without a credit history.
Fin tech apps aim to bridge this gap by offering affordable and convenient financial services to these underserved populations.
For example, some fintech apps provide mobile banking services that allow users to open a bank account, deposit and withdraw money, and make transactions without the need for a physical branch.
Another critical challenge that fintech apps address is the complexity and cost of financial management.
Many people find it challenging to manage their personal finances effectively, including budgeting, saving, and investing. Fin tech apps offer user-friendly interfaces and tools that simplify financial management tasks and empower users to make informed decisions about their money.
For instance, some fintech apps offer personalized budgeting and expense-tracking features that help users create budgets, track their spending, and save money.
Other apps provide investment management services, using algorithms and automation to help users make smart investment decisions based on their financial goals and risk tolerance.
Furthermore, these applications address the need for efficient and cost-effective payment solutions. Traditional payment methods, such as cash or checks, can be time-consuming and costly.
Financial apps provide digital payment solutions that offer fast, secure, and low-cost transactions.
Peer-to-peer (P2P) payment apps, for example, allow users to send and receive money instantly with just a few taps on their mobile devices, eliminating the need for physical currency or paper checks.
In addition to that, some fintech apps offer international money transfer services at competitive exchange rates, providing a cost-effective alternative to traditional remittance methods.
That being said, there’s always concern about the app and users’ safety aspect. Fintech apps address these issues through advanced encryption and authentication measures.
As far as security goes, many fintech products use secure authentication methods, such as biometrics (e.g., fingerprint or facial recognition) and two-factor authentication, to protect users’ financial information and prevent unauthorized access to their accounts.
Moreover, fintech apps comply with strict regulatory requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, to ensure the safety and security of users’ financial transactions.
For example, some fintech apps offer personalized financial advice and recommendations based on users’ financial data and goals.
These apps use artificial intelligence and machine learning algorithms to analyze users’ financial behavior and provide tailored recommendations on how to improve their financial well-being.
10 Steps To Creating FinTech Apps & Fintech Products As a Beginner
Creating fintech apps and products involves several important steps, which may vary depending on the specific type of fintech solution being developed.
Bear in mind that these steps are general in sense.
Depending on your fintech applications, some processes may require improvisation or alternations.
Therefore, feel free to think outside the box!
- Identify the Problem:
The first step in creating any fintech app or product is to identify the problem or pain point that it aims to address.
This involves conducting thorough market research to understand the needs and challenges of the target audience.
It’s important to identify the specific financial problem that the app or product will solve and ensure that there is a demand for such a solution in the market.
- Define the Solution:
Once the problem has been identified, the next step is to define the solution.
This involves conceptualizing the app or product and determining its key features, functionalities, and user experience.
Consider the technology and tools that will be used to build the solution, such as programming languages, frameworks, and third-party APIs.
- Develop a Business Plan:
A well-structured business plan is critical for the success of any fintech app or product.
It should outline the target market, competition, revenue model, marketing strategy, and financial projections.
The business plan should also consider regulatory and compliance requirements that may apply to the fintech solution, such as data privacy, security, and financial regulations.
Once the solution has been defined and a business plan is in place, the next step is to design and prototype the fintech app or product.
This involves creating wireframes, mockups, and prototypes to visualize the user interface (UI) and user experience (UX) of the solution.
Design considerations should include ease of use, intuitive navigation, and responsive design for different devices.
After the design and prototyping phase, the actual development of the fintech app or product can begin.
This involves coding and programming the solution based on the defined features and functionalities.
It’s essential to follow best practices for software development, including version control, code reviews, and automated testing, to ensure the quality and reliability of the solution.
- Implement Security Measures:
Fintech applications and products deal with sensitive financial data, and security is of paramount importance.
Implement robust security measures, such as encryption, authentication, and authorization, to protect user data and ensure compliance with relevant regulations.
Regular security audits and vulnerability assessments should be conducted to identify and address any potential security risks.
- Conduct User Testing:
User testing is a crucial step in the development process to ensure that the fintech app or product meets the needs and expectations of its target users.
Conduct usability testing, feedback sessions, and focus groups to gather insights from potential users and make necessary adjustments to the app or product based on their feedback.
When launching any app, it’s important to take your time conducting various levels of software testing to ensure that the final product leaves a strong first impression upon launch.
- Obtain Necessary Regulatory Approvals:
Depending on the nature of the fintech app or product, it may require regulatory approvals or licenses to operate legally.
Research and don’t forget to comply with relevant regulations, such as financial regulations, data privacy laws, and consumer protection laws, to ensure compliance and obtain any necessary approvals or licenses.
- Launch and Market:
Once the fintech app or product is developed, tested, and compliant with regulatory requirements, it can be launched in the market.
Develop a comprehensive marketing strategy to promote the app or product, including online and offline marketing channels, social media campaigns, content marketing, and search engine optimization (SEO).
- Monitor, Update, and Scale:
After the launch, it’s important to continuously monitor the performance and user feedback of the fintech app or product.
Regular updates and improvements should be made based on user feedback, technological advancements, and changing market trends.
As the app or product gains traction, consider scaling the solution to new markets or expanding its functionalities to meet evolving user needs.
7 Best Fintech Apps To Take Inspiration From As a Developer
As a developer or potential business owner in the fintech space, it’s always helpful to draw inspiration from successful fintech apps that have made a significant impact in the industry. Here are some of the best fintech apps to consider:
PayPal is a popular online payment system that allows users to send and receive money securely, make online purchases, and manage their finances.
The app offers a seamless user experience with features such as instant transfers, mobile check deposits, and transaction history tracking.
It also provides robust security measures, including two-factor authentication and fraud detection, which can serve as a good reference for implementing security in your fintech app.
Square Cash is a peer-to-peer payment app that allows users to send and receive money quickly and easily.
Some of the key features of this fin tech app include instant deposits, a cash card for spending, and the ability to request payments from friends and family.
The application has a clean and intuitive user interface with a focus on simplicity and ease of use, making it a great example for creating user-friendly fintech applications.
Robinhood is a popular investment app that offers commission-free trading of stocks, options, and cryptocurrencies.
It provides users with an easy-to-understand interface for buying and selling investments, as well as features such as real-time market data, investment tracking, and educational resources.
Robinhood’s minimalistic design and seamless trading experience can inspire the development of investment-related fintech apps.
Mint is a personal finance app that helps users manage their budgets, track expenses, and set financial goals.
It has a multitude of features such as bill reminders, credit score monitoring, and investment tracking.
Mint provides a holistic view of a user’s financial health in one place, making it a good reference for creating comprehensive personal finance management apps.
Venmo is a popular peer-to-peer payment app that allows users to send and receive money easily and quickly.
It also has features such as transaction comments, a social media-like feed for transactions, and the ability to split bills with friends.
Venmo’s social and interactive features can inspire the creation of unique and engaging fintech apps that cater to social payments and group expenses.
Acorns is an investment app that helps users save and invest their spare change by rounding up purchases and investing the difference.
Some of the app’s main highlights include automated investing, goal-based savings, and educational content on investing.
Acorns’ unique approach to micro-investing and simple user experience can serve as a reference for creating innovative savings and investment apps.
Formerly known as TransferWise, Wise is a global money transfer app that offers low-cost, transparent, and fast international transfers.
It provides features such as real-time exchange rates, multi-currency wallets, and transaction tracking.
TransferWise’s focus on affordability, transparency, and convenience can inspire the development of international money transfer apps with similar features.
We understand that as a first-timer, or a new business owner, fintech products development can be a little overwhelming.
At times, the actual steps to creating and developing digital programs – and that too, from scratch, have the chance of derailing entrepreneurs from their main goals.
Our team of experts is more than capable of not only consulting you on your fintech apps development process, but we’ll shed insight on the entire process toward a finished product that doesn’t call for constant vendor dependency.
Get in touch with our support team to get started on your dream project.